- Patrick Young
- Save The Bulgarian Stock Exchange
- online.wsj.com
Summary
It is almost unbelievable that any government could seek to nationalize at a discount an operative stock exchange but that is exactly what the Bulgarian Ministry of Finance is currently seeking to achieve.
Analysis
The world is full of government’s seeking to boost their coffers and reduce their deficits.
Alas the Bulgarian Ministry of Finance appears to have taken a step too far with their plan to de facto nationalize the national stock exchange at a significant discount to the value of the cash it holds (regardless of the property, other assets and indeed the operating value of the business!).
Such an act can only harm the image of Bulgaria in the eyes of both domestic and foreign investors during a very challenging time for the world economy where competition within the “New Europe” alone is intense for investment.
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